Question 1

Labor unions

Accepted Answer

A)   prefer to operate in states with right-to-work laws.
B)   are similar to cartels.
C)   play a larger role in the current U.S. economy than in European countries such as Norway and Sweden.
D)   attract a membership of about 25 percent of current U.S. workers.E) B) and C)
F) C) and D)

Question 2

Table 28-5
Labor Force Statistics by Age
Suppose people in the adult population in a small country are classified based on their age. 
-Refer to Table 28-5. Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

Accepted Answer

A)   0.88% which is greater than the cyclical unemployment rate for those 55 and older.
B)   0.88% which is less than the cyclical unemployment rate for those 55 and older.
C)   -0.83% which is greater than the cyclical unemployment rate for those 55 and older.
D)   -0.83% which is less than the cyclical unemployment rate for those 55 and older.E) A) and D)
F) A) and C)

Question 3

The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market.

Accepted Answer

A) True 
 B)False

Question 4

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Accepted Answer

A) True 
 B)False

Question 5

Unemployment insurance is designed to offer workers full protection against job loss.

Accepted Answer

A) True 
 B)False

Question 6

Unemployment data are collected

Accepted Answer

A)   from unemployment insurance claims.
B)   through a regular survey of about 60,000 households.
C)   through a regular survey of about 200,000 firms.
D)   All of the above are correct.E) A) and D)
F) None of the above

Question 7

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Accepted Answer

A) True 
 B)False

Question 8

Within the U.S. population, teenagers (ages 16-19) have similar rates of labor-force participation than adults of prime working age (ages 25-54), regardless of race or gender.

Accepted Answer

A) True 
 B)False

Question 9

Access to which of the following explains the lower growth rate for the American economy in the 21st century compared to the previous 250 years?

Accepted Answer

A)   food stamps
B)   Social Security disability payments
C)   Pell grants
D)   All of the above are correct.E) B) and D)
F) All of the above

Question 10

Jamarcus works part-time as a pizza delivery person in a college town. The Bureau of Labor Statistics counts Jamarcus as

Accepted Answer

A)   unemployed and in the labor force.
B)   unemployed and not in the labor force.
C)   employed and in the labor force.
D)   employed and not in the labor force.E) All of the above
F) B) and D)

Question 11

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Accepted Answer

A)   cyclical unemployment amounting to 0.5 percent of the labor force.
B)   frictional unemployment amounting to 0.5 percent of the labor force.
C)   structural unemployment amounting to 0.5 percent of the labor force.
D)   search unemployment amounting to 0.5 percent of the labor force.E) All of the above
F) A) and B)

Question 12

Figure 28-4 
-Refer to Figure 28-4. If 2,000 workers are unemployed, then the minimum wage must be

Accepted Answer

A)   $3.
B)   $4.
C)   $5.
D)   $6.E) B) and C)
F) None of the above

Question 13

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Accepted Answer

A) True 
 B)False

Question 14

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is

Accepted Answer

A)   structurally unemployed. Structural unemployment exists even in the long run.
B)   structurally unemployed. There is no structural unemployment in the long run.
C)   frictionally unemployed. Frictional unemployment exists even in the long run.
D)   frictionally unemployed. There is no frictional unemployment in the long run.E) B) and D)
F) All of the above

Question 15

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were employed?

Accepted Answer

A)   0.9 million
B)   14.1 million
C)   15 million
D)   23.5 millionE) None of the above
F) B) and C)

Question 16

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Accepted Answer

A) True 
 B)False

Question 17

Figure 28-2 
-Refer to Figure 28-2. What do the two lines in the figure measure?

Accepted Answer

A)   The top line is the labor force participation rate, and the bottom line is the unemployment rate.
B)   The top line is the labor force participation rates of the college-educated population, and bottom line is the labor force participation rates of the high-school-educated population.
C)   The top line is the foreign labor force participation rate, and the bottom line is the domestic labor force participation rate.
D)   The top line is the labor force participation rates of men, and the bottom line is the labor force participation rates of women.E) None of the above
F) A) and B)

Question 18

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Accepted Answer

A) True 
 B)False

Question 19

Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is

Accepted Answer

A)   frictional unemployment created by efficiency wages.
B)   frictional unemployment created by sectoral shifts.
C)   structural unemployment created by efficiency wages.
D)   structural unemployment created by sectoral shifts.E) A) and B)
F) A) and C)

Question 20

If the wage is kept above the equilibrium wage for any reason, the result is structural unemployment.

Accepted Answer

A) True 
 B)False

Exam 28: Unemployment

Correct Answer
verified

Jamarcus works part-time as a pizza delivery person in a college town. The Bureau of Labor Statistics counts Jamarcus as

Correct Answer
verified

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Correct Answer
verified

Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is

Correct Answer
verified

Unemployment data are collected

Correct Answer
verified

Unemployment insurance is designed to offer workers full protection against job loss.

Correct Answer
verified

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Correct Answer
verified

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were employed?

Correct Answer
verified

Access to which of the following explains the lower growth rate for the American economy in the 21st century compared to the previous 250 years?

Correct Answer
verified

Within the U.S. population, teenagers (ages 16-19) have similar rates of labor-force participation than adults of prime working age (ages 25-54), regardless of race or gender.

Correct Answer
verified

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Correct Answer
verified

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Correct Answer
verified

Figure 28-2 -Refer to Figure 28-2. What do the two lines in the figure measure?

Correct Answer
verified

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Correct Answer
verified

The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market.

Correct Answer
verified

Labor unions

Correct Answer
verified

If the wage is kept above the equilibrium wage for any reason, the result is structural unemployment.

Correct Answer
verified

Figure 28-4 -Refer to Figure 28-4. If 2,000 workers are unemployed, then the minimum wage must be

Correct Answer
verified

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is

Correct Answer
verified

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Correct Answer
verified

Exam 28: Unemployment

Correct AnswerverifiedShow Answer

Jamarcus works part-time as a pizza delivery person in a college town. The Bureau of Labor Statistics counts Jamarcus as

Correct AnswerverifiedShow Answer

Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.

Correct AnswerverifiedShow Answer

Suppose that because of the popularity of the low-carb diet, bakeries need fewer workers and steak houses need more workers. The unemployment created by this change is

Correct AnswerverifiedShow Answer

Unemployment data are collected

Correct AnswerverifiedShow Answer

Unemployment insurance is designed to offer workers full protection against job loss.

Correct AnswerverifiedShow Answer

An American worker who becomes unemployed typically receives 100% of her former salary during the first six months she is unemployed.

Correct AnswerverifiedShow Answer

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were employed?

Correct AnswerverifiedShow Answer

Access to which of the following explains the lower growth rate for the American economy in the 21st century compared to the previous 250 years?

Correct AnswerverifiedShow Answer

Within the U.S. population, teenagers (ages 16-19) have similar rates of labor-force participation than adults of prime working age (ages 25-54), regardless of race or gender.

Correct AnswerverifiedShow Answer

One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them.

Correct AnswerverifiedShow Answer

Studies have shown that the design of the unemployment insurance system reduces the job search effort of the unemployed.

Correct AnswerverifiedShow Answer

Figure 28-2 -Refer to Figure 28-2. What do the two lines in the figure measure?

Correct AnswerverifiedShow Answer

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Correct AnswerverifiedShow Answer

The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market.

Correct AnswerverifiedShow Answer

Labor unions

Correct AnswerverifiedShow Answer

If the wage is kept above the equilibrium wage for any reason, the result is structural unemployment.

Correct AnswerverifiedShow Answer

Figure 28-4 -Refer to Figure 28-4. If 2,000 workers are unemployed, then the minimum wage must be

Correct AnswerverifiedShow Answer

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is

Correct AnswerverifiedShow Answer

The process by which unions and firms agree on the terms of employment is called collective bargaining.

Correct AnswerverifiedShow Answer

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